Editorial: Pa. ready to roll dice on more gambling

Patrons play the slot machines at Harrah’s Casino in this file photo. The state’s legal casinos, including Harrah’s, may be getting some new competition if a bill in the state Legislature to expand legal gaming becomes law.
Associated Press

No, we’re not talking about the Powerball, which is zooming into the stratosphere once again after the jackpot rolled over again Wednesday night.

We’re talking about Pennsylvania, which is about to roll the dice – again – as it battles an ocean of red ink.

Think about this. Saturday night’s Powerball drawing is expected to be in the neighborhood of $400 million. If Gov. Tom Wolf and the Legislature were to be holding a winning ticket, that would only leave them $2.6 billion short of balancing the state’s books.

You read it right. The latest budget projections from the state may be $3 billion in the hole for the fiscal year that starts July 1.

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Pennsylvania is starved for revenue, but Republicans who control both the state House and Senate remain steadfast in their opposition to any kind of new tax.

So what is a Pennsylvania legislator to do?

Why expand legalized gambling, of course.

Move over, casinos, there’s about to be a lot of new players in town.

The state House Wednesday night signed off on a massive expansion of legalized gaming in the state. How dramatic is the change? Imagine being able to walk into your neighborhood bar and be able to gamble legally, as opposed to those video poker machines that have operated on the sly for years.

The measure, easily the biggest expansion of legalized gaming in the state since ushering in the era of casinos in the state back in 2004, would add everything from online gaming to gambling in airports and taverns.

Support for the bill in the House was not exactly overwhelming. It passed on a 102-89 vote, and now goes to the Senate for consideration.

It’s not like our representatives have a lot of options. The state is broke, and with tax hikes – including the ever-elusive new levy on the state’s Marcellus Shale gas business – off the board, they don’t have many other places to turn.

The state is banking that bars, hotels and restaurants will pony up big bucks for a license that will allow them to install video gaming terminals. As many as 400,000 of these one-armed bandits likely would be added statewide.

Each establishment would be capped at five terminals, while truck stops could install as many as 10. It gets lonely out there on the road, you know. Why not allow truckers to spend some of those lonesome hours contributing to the state’s treasury. The state would skim off 37.5 percent.

Looking for good news in this avalanche of new legalized gambling? Some of the state funds would be set aside to shore up the state Lottery Fund, volunteer emergency services grants and compulsive gambling prevention programs, which likely will be more needed than ever with the arrival of easy gambling into local neighborhoods.

There’s good news for the county, too. Host counties and municipalities would each get 2 percent of the take. And the legislation also remedies that massive pothole in the gravy train when the Supreme Court ruled that the state’s casino host community agreements were unconstitutional because they treated smaller, boutique-style casinos differently. The new deal will see the host county get 2 percent a year from slots revenue, with the municipality getting $10 million. In effect, it would simply continue the deal that is already in existence at Harrah’s.

Of course, by now you’re probably wondering about the fate of the state’s casinos. Places like Harrah’s in Chester probably are not thrilled with all this competition. But there is something in it for them as well – internet gaming. Yes, not satisfied with shaking you down for every last coin in your pocket when you visit their emporiums, state casinos now will be able to work their magic online. But it won’t be cheap. The fee for an online license will be a cool $8 million. Then the state will take 16 percent of revenue off the top, along with 2 percent for economic development, and another 1 percent to the host county.

And casinos also would be able to apply for a license to set up shop at airports. The going rate for a license at Philly International will be $5 million.

Finally, there is the booming area of fantasy sports betting. The House bill would make it legal in Pa., where it would then be regulated and taxed, of course. That license would cost outfits such as FanDuel and DraftKings $50,000 and 19 percent off the top.

Probably most controversial in all this is the notion of adding thousands of legal video gaming terminals in bars. State Rep. Maria Donatucci, D-185, who represents a slice of eastern Pennsylvania, voted against the bill, and was not shy about her feelings.

“Video gaming terminals in the 9,000 liquor license establishments across the commonwealth are bad for Pennsylvanians,” Donatucci said. “They are bad for families, children, older Pennsylvanians, and bad for our state lottery fund and state gaming fund. Philadelphia families don’t want gambling in their corner stores.”

No one is likely to argue that point with the representative.

But you can bet on this: More legalized gaming is coming to Pennsylvania.